House Bill No. 5436
House Bill No. 5436
PUBLIC ACT NO. 98-102
AN ACT CONCERNING WATER UTILITY RECEIVERSHIP
PROCEDURES.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Subsection (a) of section 16-262f
of the general statutes is repealed and the
following is substituted in lieu thereof:
(a) (1) Upon default of the owner, agent,
lessor or manager of a residential dwelling who is
billed directly by an electric, gas [,] OR
telephone [or water] company or by a municipal
utility for ELECTRIC OR GAS utility service
furnished to such building, such company or
municipal utility may petition the Superior Court
or a judge thereof, for appointment of a receiver
of the rents or payments for use and occupancy OR
COMMON EXPENSES, AS DEFINED IN SECTION 47-202, for
any dwelling for which the owner, agent, lessor or
manager is in default. The court or judge shall
forthwith issue an order to show cause why a
receiver should not be appointed, which shall be
served upon the owner, agent, lessor or manager or
his agent in a manner most reasonably calculated
to give notice to such owner, agent, lessor or
manager as determined by such court or judge,
including, but not limited to, a posting of such
order on the premises in question.
(2) A hearing shall be had on such order no
later than seventy-two hours after its issuance or
the first court day thereafter. The sole purpose
of such a hearing shall be to determine whether
there is an amount due and owing between the
owner, agent, lessor or manager and the company or
municipal utility. The court shall make a
determination of any amount due and owing and any
amount so determined shall constitute a lien upon
the real property of such owner. A certificate of
such amount may be recorded in the land records of
the town in which such property is located
describing the amount of the lien and the name of
the party in default. When the amount due and
owing has been paid the company or municipality
shall issue a certificate discharging the lien and
shall file the certificate in the land records of
the town in which such lien was recorded.
(3) The receiver appointed by the court shall
collect all rents or payments for use and
occupancy OR COMMON EXPENSES forthcoming from the
occupants of the building in question in place of
the owner, agent, lessor or manager.
(4) The receiver shall pay the petitioner or
other supplier, from such rents or payments for
use and occupancy [,] OR COMMON EXPENSES for
electric, gas, telephone, water or heating oil
supplied on and after the date of his appointment.
The owner, agent, lessor or manager shall be
liable for such reasonable fees and costs
determined by the court to be due the receiver,
which fees and costs may be recovered from the
rents or payments for use and occupancy under the
control of the receiver, provided no such fees or
costs shall be recovered until after payment for
current electric, gas, telephone and water service
and heating oil deliveries has been made. The
owner, agent, lessor or manager shall be liable to
the petitioner for reasonable attorney's fees and
costs incurred by the petitioner, provided no such
fees or costs shall be recovered until after
payment for current electric, gas, telephone and
water service and heating oil deliveries has been
made and after payments of reasonable fees and
costs to the receiver. Any moneys from rental
payments or payments for use and occupancy OR
COMMON EXPENSES remaining after payment for
current electric, gas, telephone and water service
or heating oil deliveries, and after payment for
reasonable costs and fees to the receiver, and
after payment to the petitioner for reasonable
attorney's fees and costs, shall be applied to any
arrearage found by the court to be due and owing
the company or municipal utility from the owner,
agent, lessor or manager for service provided such
building. Any moneys remaining thereafter shall be
turned over to the owner, agent, lessor or
manager. The court may order an accounting to be
made at such times as it determines to be just,
reasonable, and necessary.
Sec. 2. (NEW) (a) (1) Upon default of the
owner, agent, lessor or manager of a residential
dwelling or dwellings who is billed directly by a
water company or by a municipal water utility for
water service furnished to such building or
buildings, such company or municipal utility may
petition the Superior Court or a judge thereof,
for appointment of a receiver of the rents or
payments for use and occupancy or common expenses,
as defined in section 47-202 of the general
statutes, for any dwelling or dwellings for which
the owner, agent, lessor or manager is in default.
The court or judge shall forthwith issue an order
to show cause why a receiver should not be
appointed, which shall be served upon the owner,
agent, lessor or manager or his agent in a manner
most reasonably calculated to give notice to such
owner, agent, lessor or manager as determined by
such court or judge, including, but not limited
to, a posting of such order on the premises in
question. If a petition or petitions are filed by
a single petitioner regarding more than one
building under the same ownership, the court
shall, if practicable, appoint a common receiver
for all such buildings and, if filed as separate
actions, may consolidate such petitions and treat
them as a single action.
(2) A hearing shall be had on such order no
later than seventy-two hours after its issuance or
the first court day thereafter. The sole purpose
of such a hearing shall be to determine whether
there is an amount due and owing between the
owner, agent, lessor or manager and the company or
municipal utility. The court shall make a
determination of any amount due and owing and any
amount so determined shall constitute a lien upon
the real property of such owner. A certificate of
such amount may be recorded in the land records of
the town in which such property is located
describing the amount of the lien and the name of
the party in default. When the amount due and
owing has been paid, the company or municipality
shall issue a certificate discharging the lien and
shall file the certificate in the land records of
the town in which such lien was recorded.
(3) Not more than ten days after receipt of
the order of appointment by the receiver, such
receiver shall provide written notice to all
occupants of the building or buildings, delivered
separately to each dwelling unit, stating that the
receiver has been authorized to collect all rents
or payments for use and occupancy or common
expenses, as defined in section 47-202 of the
general statutes, due from such occupant and that
the owner, agency, lessor or manager, as the case
may be, is prohibited from collecting such rents
or payments for use and occupancy or common
expenses. The notice shall include the address to
which payments are to be made and a telephone
number at which the receiver can be contacted. The
notice shall be in plain and simple language and
shall be written in English and in Spanish. A copy
of the court order appointing the receiver and
authorizing the collection of rents shall be
attached to the notice.
(4) The receiver appointed by the court shall
collect all rents or payments for use and
occupancy or common expenses forthcoming from the
occupants of the building or buildings in question
in place of the owner, agent, lessor or manager.
The court may authorize the receiver to make
reasonable repairs and provide reasonable
maintenance to the premises, as determined by the
court, the reasonable cost of which shall be added
to the total amount due and owing from the owner,
agency, lessor or manager.
(5) The receiver shall pay to the petitioner,
other supplier or receiver, as is appropriate,
from such rents or payments for use and occupancy
or common expenses from such building or
buildings, in the following priority: (A) For
electric, gas, telephone, water or heating oil
supplied on and after the date of his appointment
and for the reasonable cost of repairs and
maintenance made or provided pursuant to
subdivision (4) of this subsection; (B) for such
reasonable fees and costs determined by the court
to be due the receiver; (C) for reasonable
attorney's fees and costs incurred by the
petitioner; and (D) for any arrearage found by the
court to be due and owing the company or municipal
utility from the owner, agent, lessor or manager
for service provided such building or buildings.
The owner, agent, lessor or manager shall be
liable for all such costs. Any moneys remaining
thereafter shall be turned over to the owner,
agent, lessor or manager. The court may order an
accounting to be made at such times as it
determines to be just, reasonable and necessary.
(b) Any receivership established pursuant to
subsection (a) of this section, shall be
terminated by the court upon its finding that the
arrearage which was the subject of the original
petition or petitions have been satisfied for all
buildings subject to the receivership, or that all
occupants of a building have agreed to assume
liability in their own names for prospective
service supplied by the petitioner, or that the
building has been sold and the new owner has
assumed liability for prospective service supplied
by the petitioner.
(c) On motion by the receiver, the court may
authorize the receiver to institute a summary
process action pursuant to chapter 832 of the
general statutes against an occupant, upon a prima
facie showing that: (1) The occupant has received
notice in accordance with subdivision (3) of
subsection (a) of this section; (2) the receiver
has made reasonable efforts to supplement such
notice with other written and oral notice; (3)
after the occupant has received notice in
accordance with subdivision (3) of subsection (a)
of this section, payments equal to one month's
rent or use and occupancy have not been made by or
on behalf of the occupant during the most recent
sixty consecutive days; and (4) the duty to make
such payments has not been suspended as a result
of the condition of the premises or any applicable
preoccupancy certification requirements. In any
such summary process action, the receiver shall be
subject to all claims and defenses that the
occupant could assert against the owner, agent,
lessor or manager of the dwelling.
(d) Nothing in this section shall be
construed to prevent the petitioner from pursuing
any other action or remedy at law or equity that
it may have against the owner, agent, lessor or
manager.
(e) Any owner, agent, lessor or manager who
collects or attempts to collect any rent or
payment for use and occupancy or common expenses,
as defined in section 47-202 of the general
statutes, from any occupant of a building or
buildings subject to an order appointing a
receiver or who in any other way interferes with
the receiver in the performance of his duties
shall be found, after due notice and hearing, to
be in contempt of court.
(f) If a proceeding is initiated pursuant to
sections 47a-14a to 47a-14h, inclusive, of the
general statutes or sections 47a-56 to 47a-56i,
inclusive, of the general statutes or if a
receiver of rents is appointed pursuant to chapter
735a of the general statutes or pursuant to any
other action involving the making of repairs to
residential rental property under court
supervision, rent or use and occupancy payments
and common expenses, as defined in section 47-202
of the general statutes, shall be made pursuant to
such proceeding or action without regard to
whether such proceeding or action is initiated
before or after a receivership is established
under this section, and such proceeding or action
shall take priority over a receivership
established under this section in regard to
expenditure of such rent or use and occupancy
payments.
Approved May 22, 1998